Belinda Neal won't stand for election

Former NSW health minister John Della Bosca has confirmed he is leaving parliament for a job as a campaign director in the disabilities sector.

The Labor MP on Thursday night issued a statement saying he was resigning from the state’s upper house to work with the National Disability and Carers Alliance to pursue the establishment of a national disability insurance scheme.

"For a considerable period of my tenure as a minister I held responsibility for Disability Services - this was an incredibly rewarding portfolio that allowed me to work with dedicated people, some living with disability and some supporting or caring for people with disability," he said.

"I believe that fundamental change is needed to ensure our disability service system continues to meet the needs of all people with disability, their families and carers.

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"A National Disability Insurance Scheme is essential in creating a fair and sustainable system."

The 54-year-old entered parliament in 1999 after a successful stint as NSW Labor general secretary, and went on to hold a number of portfolios including health, education, finance and industrial relations.

He stepped down as health minister in September 2009 after it was revealed he had a six months affair with a 26-year-old Sydney woman - and he has remained on the backbench since.

Earlier on Thursday his wife, disendorsed federal MP Belinda Neal, announced she would not be contesting her former federal seat of Robertson on the Central Coast as an independent.

The pair were considered to be a power couple within the NSW ALP, but the Iguanagate scandal tarnished both their reputations.

In the wake of the 2008 incident, Mr Della Bosca was also forced to stand aside as education minister as police investigated the alleged row involving him, his wife and staff at Iguanas restaurant and bar on the NSW Central Coast.

Police and the Director of Public Prosecutions (DPP) later said the pair had no case to answer over the incident.

After his resignation as Health Minister, Mr Della Bosca faced claims that he was mounting a challenge to former premier Nathan Rees' leadership.

Mr Della Bosca on Thursday described his years in state parliament and within the Labor Party as a "privilege".

"I wish the Premier and the NSW Parliamentary Labor Party well and every success for the future. I would also like to publicly thank my colleagues and former staff for their support and advice over many years.

"I would also like to thank my family, in particular my wife Belinda."

Mr Della Bosca is the fourth Labor MP to leave parliament this year, heightening perceptions the NSW Labor government has reached its used-by date.